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Virgin Australia Welcomes ACCC Decision on Air New Zealand Alliance

03/09/2013

Virgin Australia Holdings Limited (Virgin Australia) today welcomed the ACCC’s determination reauthorising its trans-Tasman alliance (the Alliance) with Air New Zealand Limited (Air New Zealand) until 31 October 2018, subject to a number of conditions.

Virgin Australia Chief Executive Officer John Borghetti said: “Since the launch of the Alliance in 2011, Virgin Australia and Air New Zealand have been able to offer consumers a better choice of flights, improved connections and increased capacity on the Tasman. We have also worked together to promote tourism throughout regional Australia and New Zealand.

“We welcome today’s decision by the ACCC as it will enable us to continue to work together for the benefit of consumers, tourism and business in Australia”, Mr Borghetti said.

The Alliance has four key components:

A broad free-sale code share arrangement covering all Tasman sectors and domestic Australian and New Zealand sectors as part of a connecting journey.

A revenue share agreement.

Reciprocal loyalty scheme benefits to members of Air New Zealand’s Airpoints loyalty programme and Virgin Australia’s Velocity Rewards programme.

Reciprocal lounge access to qualifying guests of either airline.

The re-authorisation of the alliance is still subject to approval from the New Zealand Minister of Transport.